“The rules have changed. But they might just be working in your favour.”
If you’re planning to build a granny flat in Victoria in 2025, there’s good news: the updated regulations make it easier than ever to create a compliant, comfortable, and future-proof secondary dwelling. That said, staying informed about the latest planning codes, building requirements, and sustainability standards is essential to avoid delays or costly redesigns.
Let’s walk through what’s changed, what’s required, and what it means for your project.
1. What Exactly Is a Granny Flat (in Regulatory Terms)?
In Victoria, granny flats are also known as secondary dwellings. As of 2023 reforms, a secondary dwelling is defined as:
“A self-contained dwelling on the same lot as an existing home, without subdivision, and up to 60m² in floor area.”
This definition is critical because it means:
No need for a planning permit in most residential zones (with conditions)
Faster approval process through a building permit only
You still need to meet local overlays, siting rules, and building regulations

2. Do You Still Need a Planning Permit?
In many cases: no.
As of recent reforms, Victorian homeowners can build a secondary dwelling (granny flat) without a planning permit if:
- It’s under 60m²
- It’s on a lot with an existing dwelling
- It complies with ResCode (siting and setback rules)
- No restrictive overlays apply (e.g., Heritage, Bushfire, SLO)
If your site has overlays, you may still need planning approval. This is where a property-specific check is essential.
3. 7-Star Energy Rating Is Now Mandatory
As of 2023 (and continuing in 2025), all new homes and secondary dwellings in Victoria must achieve a minimum 7-star NatHERS energy rating.
This change is part of the National Construction Code (NCC 2022) update. It ensures:
Greater energy efficiency
Lower ongoing heating and cooling costs
Improved thermal comfort for occupants
What this means for you:
More insulation, double glazing, and smarter orientation
Likely increase in initial construction costs (but long-term savings)
You’ll need to engage a thermal performance assessor before approval
4. New Livable Housing Guidelines
Alongside the 7-star rating, the Livable Housing Design Guidelines (Silver Level) are now required for most new builds.
This includes:
Step-free entry (at least one)
Wider doorways and corridors
Reinforced bathroom walls (for future grab rails)
It’s about accessibility, aging in place, and future-proofing your property.
If your granny flat is for parents, renters, or future resale, this is a major bonus.
5. What About Bushfire or Significant Landscape Overlays?
If your property falls under a Bushfire Management Overlay (BMO), Significant Landscape Overlay (SLO), or Heritage Overlay, you will likely still need to apply for a planning permit.
In those cases:
Your design may need to change to suit overlay requirements
Expect longer timeframes and additional reports (e.g., BAL assessment for BMO)
It’s best to engage a draftsperson or builder experienced with overlays
6. How This Impacts Your Timeline
For straightforward sites (no overlays):
Faster: Building permit only
Simpler: No public notice or council decision delays
For complex sites (with overlays):
Planning permit still required
Expect extra 3–6 months in approval time
Either way, the process is now more predictable and builder-friendly.
7. Why These Rules Actually Help You
It might sound like more hoops, but it’s actually working in your favour:
You can now build without needing full planning permits in most cases
The 7-star standard means better quality, comfort, and resale value
Accessibility rules make your home more inclusive and future-ready
If you’re working with an experienced team (like us at Roots Homes), all of this is handled for you behind the scenes.
Final Thoughts
Granny flats are no longer a grey area or fringe solution — they’re now backed by clear, streamlined regulations that support smarter, more sustainable housing in Victoria.
So if you’re considering building in 2025, make sure your project meets these new standards from the start. It’ll save you time, money, and potential redesigns.
And if you’re unsure whether your site qualifies for permit-free building, we’re here to help you find out.
Reach out today and let’s explore what’s possible on your block.
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2025 Regulations for Granny Flats in Victoria
2025 Regulations for Granny Flats in Victoria: What You Need to Know

